1. Planned development communities in Florida now often have multiple associations, including master associations, governing various types of properties.
2. Master associations in Florida are usually established as non-profit corporations and are governed by Chapter 617 of the Florida Statutes.
3. The type of association a master association is – HOA or condominium association – can significantly affect its governing law, authority, and members’ rights.
4. If a master association governs both condominium units and single-family lots, and the condominium units have their own sub-association, the master association may not be considered a condominium association under Florida law.
5. In such cases, the master association may be considered an HOA governed by Chapter 720, Florida Statutes, or simply a non-profit corporation governed by Chapter 617. 1. The Downey v. Jungle Den Villas Recreation Ass’n, Inc. case discussed the “constituency test,” which analyzes a master association based on whether its membership is comprised only of condominium unit owners and if only condominium unit owners have rights in the property administered by the association.
2. The court held that if a master association is entirely owned and controlled by condominium unit owners, and the property subject to the master association is for the use and benefit of condominium unit owners exclusively, then the master association is considered a condominium association governed by Chapter 718.
3. The case also discussed the “function test,” which considers whether a master association’s functions and actions are those of a condominium association under Chapter 718.
4. The court explained that the legislative intent of Chapter 718 should not be vulnerable to circumvention by the simple act of setting up an ostensibly independent corporation empowered to perform some of the functions of a condominium association but without the unit owner protections provided by Chapter 718. – A master association will be considered a condominium association if it is responsible for the operation of real property or facilities not common to an individual condominium.
– Condominium unit owners must have user rights in the master association’s property and be the exclusive voting members.
– Membership in the master association must be required for unit ownership and the association must have the authority to assess its members for shared expenses.
– If a master association oversees single family homes or non-condominium properties, or if its membership includes non-condominium dwellers, it is not considered a condominium association under Florida law.
– An analysis of the master association should be conducted using the “constituency test,” the “function test,” and Florida’s First District Court of Appeal test to determine its status as a condominium association.
– It is recommended that associations involved in such disputes consult with an experienced community association attorney.
https://www.jimersonfirm.com/blog/2017/07/is-your-master-community-association-actually-a-condominium-association-under-florida-law/
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